Allocators writing small checks to the private markets
by Andrés Ramos, Content Marketing Specialist – Nasdaq Private Fund Solutions
Super-sized allocations grab the headlines
Pension plans that make fund commitments in the high hundreds of millions or even $1 billion dollar range regularly grab headlines in media publications and industry reports like our own Nasdaq Private Fund Trends Report.
While these commitment figures are impressive and capture our attention, they are only truly relevant to GPs raising mega-funds. Yet these managers make up a minority of funds in the market fundraising at any point in time. According to the TopQ+ Forward Calendar, 19.4% of the buyout funds seeking a 2024 final close are targeting a fund size of $5 billion or greater.
Over half of the funds in market for a 2024 close (55%) are seeking fund sizes under $1 billion, with a median target size of $400 million. For these fund managers, insights on allocators making commitments at the other end of the size spectrum are more relevant.
Right-sizing your insights
With data sourced from the Market Lens platform, Nasdaq eVestment is able to surface the public pension plan investors who are regularly allocating to the private markets at smaller check sizes. Understanding who these allocators are helps smaller fund managers target the right potential investors during a fund raise.
Use the lists below to explore the public plans making small commitments across the private markets.
Reported Commitments in Q1 2023
Average reported commitment size
Private Equity
1. Santa Barbara County ERS – $9.7 million
2. Rhode Island ERS – $11.0 million
3. Orange County ERS – $21.3 million
4. Hawaii ERS – $43.6 million
5. Los Angeles Fire & Police – $48.0 million
Minimum five reported commitments
Real Estate
1. Fairfax County Educational – $8.4 million
2. Rhode Island ERS – $23.8 million
3. LA Water & Power – $37.5 million
4. Houston Firefighters – $42.5 million
5. Illinois SURS – $45.0 million
Minimum two reported commitments
Private Debt
1. Chicago Fire – $10.0 million
2. Fairfax County Educational – $20.5 million
3. San Antonio Fire & Police – $25.0 million
4. Ventura County ERA – $28.3 million
5. University of Michigan – $43.3 million
Minimum two reported commitments
Real Assets
1. Baltimore City Fire & Police – $12.5 million
2. NYCERS – $16.7 million
3. NYC Teachers – $19.7 million
4. Louisiana Teachers – $37.0 million
5. LACERA – $100.0 million
Minimum two reported commitments
Reported Commitments in CY 2022
Average reported commitment size
Private Equity
1. San Diego City ERS – $11.9 million
2. Colorado Fire & Police – $12.9 million
3. Ventura County ERA – $16.3 million
4. Oklahoma Police – $17.7 million
5. NYC Fire – $19.1 million
Minimum 10 reported commitments
Private Debt
1. Jacksonville City – $10.0 million
2. Rhode Island ERS – $18.4 million
3. San Jose Police & Fire – $21.0 million
4. Illinois State Board – $34.4 million
5. Alaska Permanent – $66.0 million
Minimum five reported commitments
Real Estate
1. Fairfax County Educational – $12.8 million
2. San Antonio Fire & Police – $23.8 million
3. San Diego City ERS – $30.0 million
4. Sacramento County ERS – $34.6 million
5. NYC Fire – $36.5 million
Minimum four reported commitments
Real Assets
1. Fairfax County Educational – $6.4 million
2. San Jose Federated City ERS – $6.5 million
3. San Diego City ERS – $7.5 million
4. San Jose Fire & Police – $10.8 million
5. Santa Barbara County ERS – $15.0 million
Minimum four reported commitments
Intelligent Fundraising
“For IR teams, Market Lens is an unfair advantage”
–Investor Relations Partner, VC Firm
The insights highlighted in this blog post are sourced exclusively through information available in our Market Lens tool, a one-stop platform offering access to underlying documents and information from public plans and their consultants, including investor profiles, asset allocation studies, commitment pacing plans, peers’ pitchbooks and much more.
Clients use this information for up to the minute insights into market trends, and to better identify prospective investors and access more granular information to tailor pitches and presentations to accelerate their fundraising and enhance investor relations.
